Reckoning Nears for Detroit

Michael Casey and Douglas Bernstein discuss whether Detroit will sell its art museum, and Ben Casselman looks at who bears blame for the weak U.S. economy.

This transcript has been automatically generated and may not be 100% accurate.

... the ... who's to blame the weak US economy ... we Downy housing prices and improving consumer sentiment to giving the U S economy and good chance of recovery ... that is when the rest the Weld holding it back ... good morning welcome the New Saab on Michael Casey ... essays factory data showed how global slowdown continues to create problems for U S manufacturers ... Tony is now is it going to put Ben Casselman who wrote today's page one story on this issue the warning that the morning ... so not result in going to move the ball out to be about the world to me is the day little better I'm in uni that we've had these housing rebound and consumers look the series of short lead market that are coming through the results of the matter also says ok all the sudden ... we get a fourteen nine we get on the US and that was too close signifies a contraction in manufacturing ... how could this be ... well Media's the globe and in you look at it your histories Europe it was a little bit better but it was still ... contraction in your up ... I know one of the major indicators their suggests a contraction in the manufacturing sector there that is clearly not what we've been experiencing for the last seven years in China ... some of the other ancient kingdom this week when the US is not an island and is affected by what's going on in the rest of the war estimate is that we are a few feet but ... who portables ... that I mean what what is the ... in work with Boozer and anger into this was interesting if you take a step back early in this recovery he was the exact opposite story ... the U S U S manufacturers were struggling at home because of the weak economy here they were benefiting from a strong economy overseas especially in the developing world ... now we're kind of scene the officer ... the good news here in the US is that consumers have been relatively strong and the fundamentals the economy are certainly doing better than the war and thus helping to carry manufacturing sector three when the broader economy through the body is being affected that is fast easy snow because the rest will look to the US right now I'm under of practices we you to Israel with China ... I'm in as result was seen in this this Friday on on ... Mexican foods and yell was was Bumi as was on the idea that the US is to recover ... the now out of concerns of us might be slowing down the rest of the will was emerging market currencies so often Ellie else ... they really is a very interconnected situation worse it also means lower commodity prices that can be a bit of that benefit both for domestic consumers and also for manufacturers lower input prices so there are some positive signs to that ... but is can be very difficult for the manufacturing sector especially for the broader economy as a whole to do very well ... if the rest of the ... global economy is holding back any reporting you close without that walking to manufacturers what are they saying about that when we quoted today a company is in court which is in a major multinational industrial company to make ... the parts that go into just about everything out ... on that for our second ... and they're seeing exactly what we're talking about here ... there was a period there where there was this cautioned ever given for the rest the world was that was then work that they are in Chief Executive ... Sandy Cutler you use ... they have this cushion from the rest the world that he was able to offset a little bit of the weakness in the US ... and now that has dissipated ... does that mean that they can do well it doesn't mean that individual companies can do well ... but it does mean that ... is all the options and it's not going to be just a will ride the GDP growth that we're seeing in shock ... it was a bit of a pain in ... the resource and a read on Mitchelson you can walk to the US ... it is a Many faction that was going on the last couple years ride with ... previously ... the high cost of doing business in it that he would take business and it was to last longer run trend now that the labor costs of rising in China ... and there's been a demand for for domestic manufacturing as a result the downside ... is that hasn't translated into jaw choosing more production in the US ... we have an answer we seen a lot more employment in manufacturing in the US and so were looking forward right Friday we get our monthly jobs data ... this is seen as another big reporting on this one on a lot of anticipation over to see a big manufacturing employment to the official ... the ... robots with awful for extra nice to tonics for every dead and CIA St ... well if you see is inching towards bankruptcy ... to its public art collections be considered assets ... but the dilemma facing Detroit right now it's emergency managers considering with the distilling Island by the Ch ... Ch the toys into two pots ... joining us now as Douglas Bernstein managing partner of ... petunias banking bankruptcy and creditors' rights practice with ... them when Douglas ... departing ... to the list this seems like a drastic move that is the city have a choice ... I really don't ... need the unit emergency manager make will be a difficult one and you really have to have ... all of the epoch of the Caribbean plate because his role ... is to reduce the debt and then find a way to ... generate revenue to me P hopefully reduce debt load ... to allow the city to operate in the future ... and you could make a an emotional argument for Twitter and a half of that that the weather PPR collection the animals that could move ... the water to the treatment plant in Taiwan but if you if you don't show up at UBS that they knew that going to kick the ... things like that to sleep on ... top of the soul of the city I mean ... this is the city of Motown is the isthe Holland ... to the birthplace of the U S automotive industry it's a proud city ... I'm ... doin' spot seems like ... him is that it's it's coming off its high standard and is there some way to actually model ... on how those coming intangible things mine in the long run prove beneficial in the way the draw people back ... well to the challenge you there Mr. or state to use the app select potentially between state law and bankruptcy law if the city of Detroit in fact files Chapter nine protection ... in that ... in the state law ... although ... there there's a ... scarcity of law at the Chapter nine arena ... the state law cannot trump federal bankruptcy law so you get a new ... and better at least putting the deficit at risk or tried to stitch for twenty four is going to have to ... be managed ... now that haven't been that the creditors themselves under Chapter nine ten that forced the Taiwan directly but indirectly potentially they can ... obviously I'm ... one of the things he said that he and his ... hope that ... the creditors will one of the city of Detroit to be able to flourish in the future and part of their plan will involve ... this means that of the strong their collections students and that ... is the Sunni ... political solution here or is this entirely because it is this ... well but it really is that they want to Steffi and or the federal government wants to step into those that would be a solution but there is no demonstration today that they had the effect will happen ... so I haven't really talked about sending building read a mean is there you have is that all breakdown ... well then adapt yet but it ... didn't do what it would bring on the open market ... it would be in the context of the plan for the city ... the only way you would have to value would be probably on the open market through an auction as to what collectors would be willing to pay for others or other musing on the success of the debt to seventeen billion to the city know is that it intended to unload the moving target depending on the numbers ... that you read ... inherently the numbers provided by the city of Detroit historically have been unreliable so ... it gets better get them to detect been part of the challenges to ... the determination of what the amount of that debt load is and how big it was leaving the city needs ... to accomplish in order to meet this weekend ... write to secure a massive sum of the depreciate its ... when we come back through the markets ... Sts ... the pedal to the markets today Optus in Philly drastic moves yesterday with coach Chris Dietrich good morning Chris going South Isn't this one ... for tilting along the higher of Dow futures are looking about ten points up of course and focuses data point the refused to go away which is ... on Tuesday as the June industrial average is now rose twenty consecutive weeks were looking at twenty one ... the Street expecting ... that ... but but here we are the reason this but I mean there's something about two-thirds seem to make it a positive day Nana alerted if we actually funny but this is akin to be seen in some sort of ... one minute some so ... yes indeed so it'll be interesting see due to Zillow's cos ... it's only the let's look psychology has a lot ... to do with the markets clearly and effectively this is the idea was first running through week with a lockdown Zoutman Rehling on the scene quite weak but that many pensioners his discuss the previous segment so that it's very strange mood right now right so we get back to his Goldilocks market which is where the lot where no economic data as interpreted was that mean for the Federal Reserve and continued easing so as you say no really weak data ... from China since the belief among some that that means that the easing is Guinea continue so it's not as into it is ... sometimes is more bad debt equals that markets could Edythe L R it's not too hot too cold calling Looks Conte said ... that the house were up in a mean it's it's still it's it's a little bit confusing for those who fell for the Apple that number could end up being an Updike ... what are we looking for today ... well we got ... we had two more Fed speakers ... one Fed governor won the regional Fed presidents of it to be on a good ... deal more this tea leaf reading this and aam and then in terms of stocks that we get an individual movers first up is Dollar General the discount ... retailer is down about six percent cream premarket ... Tom Fuller earnings guidance disappoints ... comes in lower expected so ... on a sour note on the retail front and General Motors of the U S auto maker is up about two percent in premarket therein and joined rejoin for the first time since two thousand I and the SNP five hundred ... stock index ... obviously and for fully matters that to ... and those stocks that track the index so you know it's expected to get a boost ... on ... the makers and also don't stop here ... but something goes down another two percent was down four percent yesterday they're firing eighteen percent of their workforce ... cutting costs up has been done ... at least on the stock side and this is a drastic move ... pretty drastic move and shows all the weaknesses that the struggle is cleanliness of our time to write so not much of a rebound on onthe from financing ... the sentiment the top ... so we come back ... bake in an age when ... not ... hungry ... it's ... he may already have a Netflix Spada pliable Amazon Prime subscriptions ... the words of Scripture for the next time you fly ... it is trying out a new model it is wise and upgrades and that usually given to elite frequent fliers ... who tend to buy an ideal suspicion ... corporate Intelligence father Tom Guy joins us now good morning song Tories ... so I'm ... not just an affinity with this with the with a slew of me ... and I was five hundred bucks a year with suspicion ... the ... tow guy and I can see how did that sees value with us that's quite a big to ... begin a pioneer and doesn't flood regular chore that would be a good deal this is kind of business was or is it ... some in the middle ... I think probably flawlessly and a bit of quiet about five people one or oh what fun it or not a frequent flier ... find the appointment of Cardinal there are good for compliance and twenty with a month ... CFO think it's probably ... people who fly if that it's ... normal to my Camino elite frequent fliers on their own to unify fixed on the ... initial told clients on an occasional often and sometimes in a fine of up to solvency ... Audi valued at what the Fed the premium economy think you can subscribe ... to five hundred bucks to you you always get the and the dollar currency ... one can subscribe to not pay for checked baggage ... I'm not such a little further to climb one of the family ... lead to dealer from a market something ... for her fifty bucks the year ... up to eight people not to check in on ... a seven eleven has been sent there was one with a wife and three kids know is taking big bags ... than even I can content and media lenses would be a top eleven subscriptions cousins is complete and supposing can climb to the ongoing revenue ... the TUC conference is Epcot a ... good direction ahead and when ye fall into this monster car revenue items and gusty about from the convening of the vehicle to ... the other interesting thing obviously you want to pay five hundred bucks ... today but it's it's it's good to be a bit harder to justify booking with another airline ... but just in the family to the frequent flier programs tend to look people in my from Wednesday ... this is another way when you get to catch one of cash the ... defining who you getting in from white beginning loyalty of the people who ... you know I'm not looking that fit and have a big incentive to stay with ... us now with Simpson because the happen in the airline industry this is ... a reflection of competition ... yellow from home on one level of competition on an unknown new to really wonder whether other airlines in a jump in and start offering this now because ... I think you know when you think about life love and some people ... putting on the other level of to still wants me to get capture more of the kind you know that ... though that the profitability of somewhat going down this leaving more modest wanted claims ... that cutting flights to make sure that every single flight of one hundred percent but I doubt ... this just another way to get some bonus cash out of people ... in return for not really giving them the ... right my chances and you know who would retain the things on it's it's really about flying which it bought in particular was kind of been viewed as a product that is the isthe Marlin trying to avoid the cost to you now have been doing today so time since the summer not in the TV blogging about ... the being done on the banking and ink on going up that confidence is launching ... on Friday on on on side of this it seems on some of them to me ten ... appreciably to take the pieces instead so ... what has been selling another and in all the places you know this whole caught a bug your buck ... you know using don't offer the breadth of bogus and that that is to have a stake in Thai food that they use a new spin on the menu of collagen and restaurants in China for something extreme ... you know bacon cheese burger or whatever Oscar on and on and on top on in good will with living in and there are no employee cafeteria while back ... um ... you know it has been around for while the seed of benefit to work up the phone going off a few of the kinda nationwide and that doing this in in ... re condition of the next ... day on ... Friday to Monday yes last week that ... its peak in the found money ... aam and and the will ... of the Penney some history that lifted and prospects to this particular delicacy ... it's interesting for the ... Lacoste I guess this above cheeseburger on and on nonfarm Sánchez is not available to Duluth ... in the years it was the RBC his favorite dishes supposedly five-year legend art without enjoy father invented or use the off fore ago ... it's a little bit hazy whether this is actually true won all but it's the one thing that is true enough you one of them even in any ... now and it was the calorie counts on this thing ... actually surprisingly three hundred and sixty calories which is ... the interesting Lee less than all but gone and done for the families of the orders fell ... but ... somehow they manage so I guess cut down on something ... but it has not done alongside much with the dread unit and thus our dentist is the very idea of lower fat and polishing went up with just a sister newsletter too wedded to limit harm to humans only six seasons of competition from ... from from ... from the eldest of eleven even more extreme sandwich for breakfast at the far down the gauntlet in the whole darn Tough average ... drop in on the baton to the house the the the pressure from everyone else to ... publish the tough ... market is going to go with the donuts being in the mix of sense into the rather frightening sooner start on things too much heat on was good to see it in ... thanks remote in time so we have time for for now come back it's been busy for money beats ... 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